SSE to raise U.K. electricity, gas prices

RazakMusah

SSE PLC (SSE.LN) will increase U.K. household electricity and gas tariffs by an average of 8.2% from Nov. 15, it said Thursday.

The power company said the rises are due to the cost of buying wholesale energy and government-imposed levies collected through energy bills.

The increase by an average of 8.2% for both gas and electricity equates to two pounds ($3.2) a week for a typical dual-fuel customer, said the company, formerly known as Scottish and Southern Energy PLC.

The price rises will affect around 4.4 million electricity customers and around 2.9 million gas customers, not including customers on fixed-price tariffs.

The rise comes a year after its previous such move.

Last month, opposition Labour Party leader Ed Miliband said he would freeze gas and electricity prices until the start of 2017 if elected in 2015, though this move was dismissed by Conservative Prime Minister David Cameron.

SSE, which is one of the 'big six' energy companies in the U.K., said it will give every domestic customers at least 30 calendar days' notice of any price increase.

The utility also said it will change its tariff structure to move all customers on to a simpler pricing structure.

"This will ensure that live tariffs comply with certain elements of the Retail Market Review reforms being introduced by energy regulator Ofgem from Oct. 23, designed to make the market simpler and fairer for customers", it added.

SSE expects its annual profit margin in its energy supply business should average around 5% over the medium term. In 2012-2013, it was 4.2% and SSE expects to fail to meet this 5% target profit margin again in 2013/14.

SSE shares closed Wednesday at GBP14.54, valuing the company at GBP14.04 billion.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.